₹10,000 in a fixed deposit for 10 years at 7% (interest added every quarter) becomes ₹20,016. The interest earned is ₹10,016.
Deposit
₹10,000
Tenure
10 years
At 6.5%
₹19,056
At 7%
₹20,016
At 7.5%
₹21,023
Tax on this interest
FD interest is added to your income and taxed at your slab rate. Banks deduct TDS when interest crosses the yearly limit; you can give Form 15G or 15H if your income is below the taxable limit.